Federal Reserve Chair Powell’s Dismissal Speculated Amid Renovation Controversy

On July 15, Anna Paulina Luna, a U.S. Congress member, claimed on X that Federal Reserve Chair Jerome Powell is “about to be fired.” Powell’s potential dismissal, linked to a $2.5 billion renovation critique, raises political tension affecting market perceptions.

Controversy erupted after U.S. Congresswoman Anna Paulina Luna claimed Powell faces dismissal over a $2.5 billion Federal Reserve building renovation project. Donald Trump has criticized Powell, blaming him for alleged mismanagement amid claims of “disgraceful” expenditures on the renovation. Trump stated, “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful.” Powell defended the project in response to accusations of opulence, asserting no inclusion of “VIP dining” or “roof terrace gardens.” The latest political debate focuses on potential repercussions for Fed policies, shaping ongoing discussions among stakeholders.

Federal Reserve Faces Political Turbulence Over Renovation

Market reactions ensued post-Luna’s claim, with Polymarket odds for Powell’s removal reflecting increased betting interest. However, legal protections for Fed independence render immediate dismissal unlikely. Influential figures like Kevin Warsh have noted a need for “regime change” at the Fed.

Bitcoin (BTC) maintained stability amidst speculation, priced at $118,618.30 with a market cap of $2.36 trillion, according to CoinMarketCap data on July 16, 2025. Trading volumes saw a decrease, yet BTC showed a solid 40.18% growth over 90 days.

Cryptocurrency Stability Amidst Fed Dismissal Speculations

Did you know? In 1935, a Supreme Court ruling fortified Fed independence, barring presidential dismissal without just cause, setting a precedent for such governance stability amidst political pressures today.

The Coincu research team highlights the broader implications for financial regulation due to this controversy. Cryptocurrency’s insensitivity to the scandal reflects the Fed’s historic stability in policy, despite political challenges. They emphasize potential for heightened volatility if Fed policy uncertainty persists.